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New Orders Slow to 13-Month Low, But Services Growth Stays Solid
PMI Services: India's services sector continued its strong performance in February. The HSBC India PMI stood at 58.1, indicating rapid expansion in the sector. However, due to increased competition, new order growth has slowed to a 13-month low.
The services sector brought some positive news for the Indian economy. The services sector continued to grow at a fast pace in February. This information comes from the HSBC India Services PMI figures, which were released on Monday. According to the figures, the services PMI in February was 58.1, indicating that the sector continued to grow at a fast pace. Any figure above 50 indicates growth.
According to the HSBC India report, the growth prospects for the Indian services sector remain stable. Although the PMI figure slightly declined in February to 58.1 from 58.5 in January, it remains at a strong level.
The report also revealed a concerning point: the pace of new orders fell to its lowest level in 13 months. Some companies reported that increased customer inquiries and strong marketing helped boost sales. Others said that increased competition prevented rapid expansion.
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Pranjul Bhandari, Chief Economist for HSBC India, said the February PMI data indicates another month of strong growth in the services sector. He explained that while new order growth slowed due to increased competition, international sales saw a strong recovery. Many service companies also increased hiring this month to meet operational needs.
Along with the services sector, overall private sector activity also showed strength. The composite PMI, which includes data from both the manufacturing and services sectors, rose to 58.9 in February. This is the fastest growth rate in the last three months, supported by a strong performance from the manufacturing sector.
When looking at individual segments of the services sector, finance and insurance once again emerged as the best-performing sectors. These sectors recorded the fastest growth in both production and new orders. However, even here, the pace of expansion was somewhat slower than in previous months. On the other hand, the real estate and business services sectors lagged behind other sectors in terms of production and new orders.
